Multinationals, tax and transparency

Sir, – Plans in this year's budget to oblige multinationals to disclose greater information about their activities in each of the countries in which they operate are welcome (Colm Keena, "State to move on multinationals' disclosure of tax data", September 22nd).

The recent Lux Leaks scandal starkly exposed the damage that a lack of corporate transparency facilitates, particularly in developing countries, where the United Nations Conference on Trade and Development estimates that $100 billion is lost annually to corporate tax dodging.

However, plans to keep this information private, and inaccessible to the public, will undermine many of the potential benefits that could flow from publicly accessible information. Country-specific information would enable the public to make informed judgments about a multinational corporation’s contribution to society, and provide valuable information to lawmakers to help them determine whether laws need to be changed to close loopholes in the tax system.

It will also help investors identify risks, make informed decisions and hold multinational corporations to account.

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By taking this crucial step towards improving our tax system, governments can ensure a level playing field for our domestic enterprises, which cannot compete with multinational corporations that avoid taxation by shifting their profits into tax havens.

Taking the global lead in introducing publicly accessible information would also go some way to mitigating the reputational damage suffered by Ireland both through the Lux Leaks scandal and revelations around the use of the “Double Irish” scheme, and would be a strong statement of commitment to the highest levels of corporate transparency. – Yours, etc,

SIOBHAN McGEE,

Director,

ActionAid Ireland;

CLAUDINE GAIDONI,

Attac Ireland;

ROSAMOND BENNETT,

Chief Executive,

Christian Aid Ireland,

EILIS RYAN,

Director,

Debt and Development

Coalition;

DAVID JOYCE,

Irish Congress

of Trade Unions;

JIM CLARKEN,

Chief Executive,

Oxfam Ireland;

JOHN-MARK

McCAFFERTY,

Head of Social Justice,

Society of St Vincent de Paul;

JOHN DEVITT,

Director,

Transparency Ireland.